WHAT IS THE DISCIPLINE OF THE MARKETPLACE

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WHAT IS THE DISCIPLINE OF THE MARKETPLACE
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MARKETS FORCE EFFICIENCIES

• A FIRM IS EITHER EFFICIENT OR BANKRUPT.
• WHY BECAUSE OF COMPETITION.
• COMPETITION PUTS DOWNWARD PRESSURE ON PRICES.
  (THE LAW OF SUPPLY DEMAND)

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THE ALTERNATIVE TOTAL SOCIALISM IS AN ECONOMIC
FAILURE
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PURE SOCIALISM ( COMMUNISM)

• 1. NO INCENTIVE FOR MANAGERS LIKE SUCCESS OR
  BANKRUPTCY.
• 2. NO INCENTIVE FOR OWNERS THERE ARE NO OWNERS
  EXCEPT THE GOVERNMENT.

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• 3. NO INCENTIVE FOR WORKERS.
• 4. NO DISINCENTIVE FOR LAZINESS.
• 5. NO RIGHT OF SELF-RESOLUTION.
• THEREFORE ABSOLUTE POWER CORRUPTS ABSOLUTELY.

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ROLE OF GOVERNMENT REFEREE

• ENFORCE FAIR PLAY COMPETITION

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MAYFLOWER LESSONS THAT SAVED MADE AMERICA 1

• INVESTORS WANTED LABOR ONLY IN THE COMMUNAL
  FIELDS .
• THEY FACED STARVATION FAILURE.
• THE FREE RIDER PROBLEMS.
• FREE ENTERPRISE AND CAPITALISM UNLEASHED GREAT
  PRODUCTIVITY AND RESPONSIBLE BEHAVIOR. (60.00)
• 1775 PER CAPITA INCOME IN COLONIES MADE THEM
  AMONG THE RICHEST PEOPLE ( WORLD. )

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THE NEVER ENDING WAR ON CAPITALISM

• WAR ON BILL GATES
• GOVERNMENT SUIT AGAINST HIM TRIGGERED THE LAST
  RECESSION.
• HE PROVIDED JOBS WEALTH TO MANY
• WAR ON ROCKEFELLER
• HE UNDER PRICED OTHERS BENEFITING CONSUMERS HIS
  COMPETITION WENT TO LOCAL POLITICIANS FOR REDRESS
  BECAUSE THEY COULD NOT COMPETE
• IS WALMART THE NEWEST TARGET???

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GOVERNMENT OVERSIGHT AND REGULATION
YESGOVERNMENT OVER-REGULATIONNO!WHYWILL
DIMINISH THE ECONOMIC GROWTH OF ALL OF US
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OTHER EXAMPLES

• MEDICAL SCHOOLS
• OIL. NO NEW REFINERIES
• SEARS
• GENERAL MOTORS
• DEREGULATIONS OF
• TRANSPORTATION
• BANKING
• LONG DISTANCE
• CABLE????
• WEAK ,INEFFICIENT FIRMS GO TO GOVERNMENT FOR
  PROTECTION OTHERS.

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WHY ANTI-CAPITALISM??

• UTOPIAN UNREALISTIC THEORIES BY
• INTELLECTUALS ABOUT HUMAN NATURE
• THEY DENOUNCE INEQUALITY.
• THEY ALSO BELIEVE IN SOCIAL ENGINEERING
  FORGETTING THAT PEOPLE CANNOT BE SO MANIPULATED.
• THEIR PLANS USUALLY MAKE THINGS WORSE,
  UNINTENTIONALLY.

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ECONOMIC POLITICAL FREEDOM ARE BENEFICIAL
GLOBALLY

• FREEDOM OF CHOICE, INTERNATIONAL EXCHANGE AND
  INVESTMENTS AND DEVELOPMENT HAVE ALLOWED GREATER
  WEALTH FOR ALL.
• BETWEEN 1965 TO 1998 THE AVERAGE WORLD CITIZENS
  INCOME DOUBLED FROM 2,497 TO 4839 ADJUSTING FOR
  INFLATION.

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TWO EXAMPLES OF LESS GOVERNMENT REGULATION

• NEW ZEALAND
• GOV WAS 44 GDP
• OVER-REGULATED PG 87 McTIGUE
• ALLOWED MARKET TO DECIDE AND ARE NOW PROSPEROUS
• IRELAND
• HAD TOO MUCH GOV HIGH UNEMPLOYMENT BUT REFORMED
  AND ARE NOW PROSPEROUS.

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A FAMOUS HALF TRUTH

• PEOPLE SAY THAT GLOBAL CAPITALISM MAKES THE POOR
  POORER AND THE RICH RICHER.
• THIS IS ONLY HALF TRUE.
• THE RICH ARE GETTING RICHER BUT SO ARE THE POOR.
• EVERYONE IS GETTING RICHER!

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THE VALUE OF ETHICS
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LACK OF ETHICS IS A DRAG

• AERODYNAMICS ENERGY IS LOST AND WASTED BY
  FRICTION OR TOO MUCH DRAG.
• DISHONEST BEHAVIOR HAS THIS EFFECT ON THE ECONOMY
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• A BAD EFFECT ON THE FIRM ALSO.